Chinese blue chips head for worst week in 3 months as foreign investors sell off

SHANGHAI, Dec.17 (Reuters) – China’s blue-chip stock index fell on Friday, putting it on track for its worst week in three months, as foreign investors sold off stocks amid concerns over regulatory impacts and a global resurgence of COVID-19 cases.

** At the midday break, the Shanghai Composite Index (.SSEC) was down 0.9% to 3,641.77 points.

** China’s blue-chip CSI300 Index (.CSI300) fell 1.31%, putting it on track for its worst week since mid-September.

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** Adding to tensions between the United States and China, Washington on Thursday imposed investment and export restrictions on dozens of Chinese companies, including the main drone maker DJI, accusing them of complicity in the oppressing China’s Uyghur minority or helping the military. Read more

** Washington has yet to decide whether it will block more sales of U.S. technology to Chinese chipmaker SMIC (0981.HK), sources told Reuters. Minimum wage stocks gained 0.76% in Hong Kong on Friday, but fell more than 13% this month. Read more

** Foreign investors were net sellers of A shares, with Refinitiv data showing outflows of nearly 1.6 billion yuan ($ 251.20 million) via Stock Connect. (.NQUOTA.SH), (.NQUOTA.ZK)

** Consumer Staples (.CSI000912), including distillers favored by foreign investors, fell 2.46% on the day.

** Energy companies (.CSI000908) fell 1.9% and the information technology sector (.CSIINT) lost 1.77%.

** Hong Kong-listed Chinese H-Shares (.HSCE) fell 1.77% to 8,202.18, while the Hang Seng Index (.HSI) fell 1.28% to 23,175.19.

** Tencent Holdings (0700.HK) fell 3.14% despite regulatory approval to release updates to mobile apps, including QQ Music and WeCom, amid continued concerns over corporate crackdown technological. Read more

** The IT sector in Hong Kong (.HSCIIT) fell 3.3% and the Hang Seng Tech Index (.HSTECH) fell 2.63% to an all-time high.

** The Shenzhen Index (.SZSC) was down 1.13%, the ChiNext startup board (.CNT) was 1.38% lower, and the Shanghai technology-focused STAR50 index (. STAR50) fell 1.74%.

** The yuan softened to 6.3698 to the US dollar from a previous close of 6.369.

($ 1 = 6.3695 Chinese yuan)

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Reporting by Andrew Galbraith; Editing by Subhranshu Sahu

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